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FRBP 7001 Scope of Rules of Part VII (Judge Gargotta)

In re UTEX Communications Corp. (September 21, 2011)Issue: Do Debtor’s set-off claims negate Creditor’s administrative expense claim?Holding: Debtor’s offset claims do not negate the administrative expense claim. Under Bankruptcy Rule 7001, an objection to a claim is not the proper place to raise a claim for set-off. Instead, these claims can be included in an adversary proceeding under Bankruptcy Rule 3007(b).

Roberts v. Gharbi (December 8, 2009)Issue: Should Motion for Summary Judgment be granted to sell the property owned by the Debtors, free and clear of liens and all other interests, under 11 U.S.C. § 363(h) and Federal Rule of Bankruptcy Procedure 7001(3), when (1) partitioning the property is impracticable; (2) the benefit to the Estate of the sale of the Property, free of the interests of the co-owner, outweighs the detriment, if any, to the co-owner, the property; and (3) the Property is not used in the production, transmission, or distribution, for sale, of electric energy or of natural or synthetic gas for heat, light or power?Holding: The Trustee’s Motion for Summary Judgment should be granted because there are no disputed material facts and Debtors failed to produce any evidence to contradict the Trustee’s assertion that he has authority to sell the Property.